ACC Limited has approved a scheme of amalgamation with Ambuja Cements Limited. The merger aims to combine operations, drive growth, and achieve operational efficiencies. The Share Exchange Ratio is based on a joint valuation report, with 328 shares of Ambuja Cements issued for every 100 shares of ACC. The scheme is subject to regulatory approvals, including the National Company Law Tribunal.
ACC Board Approves Amalgamation
The Board of Directors of ACC Limited has approved the scheme of amalgamation with Ambuja Cements Limited at a meeting held on December 22, 2025. This strategic move aims to consolidate the strengths of both entities and drive long-term value creation. The amalgamation is subject to necessary statutory and regulatory approvals.
Rationale Behind the Amalgamation
The primary goal of this amalgamation is to combine the operations of ACC and Ambuja Cements, leading to focused growth, improved operational efficiencies, and significant business synergies. This will also enable Ambuja Cements to assume complete ownership and direction of ACC’s business for long-term strategic alignment.
The resulting corporate structure will enhance agility and strengthen the overall business ecosystem. The amalgamation will unify manufacturing and commercial functions, optimize resource allocation, and streamline the group’s structure.
Share Exchange Ratio and Consideration
As part of the scheme, Ambuja Cements will issue 328 equity shares for every 100 equity shares of ACC. The share exchange ratio is based on a joint valuation report dated December 22, 2025. This valuation has been reviewed by an independent Merchant Banker for fairness.
Impact on Shareholding
Post-arrangement, the promoter shareholding in Ambuja Cements is expected to be around 61.63%. The public shareholding is estimated to be approximately 38.32%.
Note that this does not account for a separate Scheme of Arrangement for the merger of Sanghi Industries Limited (“Transferor Company SIL”) into Ambuja Cements Limited, or the Penna Cement merger.
Source: BSE